The central bank of Russia has agreed to bailout B&N Bank after the latter ran into financial problems.
The Bank of Russia will serve as a key investor to boost the capital position of the lender that had asked for help from the central bank.
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The investment, whose details were not disclosed, will be funded by the Banking Sector Consolidation Fund. The capital would be injected into B&N Bank, affiliated lender Rost Bank, and their subsidiaries.
The central bank said that it will not place a moratorium on creditors’ demands or impose a bail-in option.
“The measures aimed at improving the Banks’ financial stability are being implemented in cooperation with the Banks’ current owners and executives, which is set to secure the continuity of their operations in the banking sector, as well as, moving forward, make all necessary arrangements towards the Banks’ operational development in the future,” Bank of Russia said in a statement.
The latest bailout is the second in a span of a few weeks. At the end of last month, the central bank also decided to bail-out Bank Otkritie Financial that was facing a deposit run.
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